TRADING TIPS :
- Forex-Euro near 9-year lows vs. stronger dollar.
- Forex- GBP/USD drops to 18-month lows ahead of BoE statement.
- Forex-AUD/USD rises off 5-1/2 year highs on Australian data.
GBP/USD hit 1.5034 during European morning trade, the pair’s lowest since July 2013; the pair subsequently consolidated at 1.5056, declining 0.36%.Cable was likely to find support at 1.4812 and resistance at 1.5156, Wednesday’s high.The dollar continued to be underpinned after a report on Wednesday showed that the U.S. private sector added a larger-then-forecast 241,000 jobs in December. The upbeat data boosted the outlook for the U.S. recovery and raised expectations for a strong reading of the government nonfarm payrolls due on Friday. On Wednesday, the minutes of the Federal Reserve’s December meeting did little to alter expectations that U.S. interest rates will start to rise later this year.
EUR/USD was at 1.1815, close to overnight lows of 1.1801, the weakest since January 2006.The single currency remained under pressure after data on Wednesday showing that the annual rate of euro zone inflation fell by 0.2% in December, down from 0.3% in November. Economists had expected an annual decline of 0.1%.It was the first fall in the annual rate of inflation since October 2009.The decline in consumer prices added to expectations that the European Central Bank could implement quantitative easing as soon as its next meeting on January 22. Late last week ECB President Mario Draghi said the risk of it not fulfilling its mandate of price stability is higher now than six months ago.Demand for the dollar continued to be underpinned after a report on Wednesday showed that the U.S. private sector added a larger-then-forecast 241,000 jobs in December.
1. Buy GBP/USD Above 1.5093-TG: 1.5113/1.5143 SL 1.5063
2. Sell GBP/USD Below 1.5030-TG: 1.5010/1.4980 SL 1.5060